“The Bitcoin maximalists were right, again. Damn them. Damned in hell. This whole thing is their fault! ”
Many times, especially since 2020, I’ve heard variations of the following from people across the “crypto” space:
“Look: a billion dollar company is not going to collapse overnight. It’s impossible. Are they sponsoring an entire stadium for heaven’s sake and do you think their business model is to run away with your $ 2,000 worth of cryptocurrency? Don’t be so stupid. It is quite safe to leave your bitcoin there. However, self-storage is too complicated. If we want mass adoption, caretakers are important. “These people’s faith in VC-backed institutions is more blind than the most fundamentalist of religious fanatics, only in a much worse position.
And these people behind these institutions are glorified and revered by the media like Entrepreneurs, while their views lead people straight to the slaughterhouse. Case in point with Mr. Wonderful below:
This demonstrates a lot of what I discussed in my October satirical article. You know we’re at an advanced stage when the “smartest in the room” these days are just as stupid as the rest of the lemmings marching through lava.
They are so used to making easy money thanks to their blurred proximity to the money printer, which they have no idea why there is such a thing as Bitcoin, why it matters or why it is different. They fail to see beyond the paradigm that has led them to success to date, and as such they are by no means qualified to comment on something paradigmatically different like Bitcoin.
When Bitcoin maximalists turn warnings into memes, for example “not your keys, not your coins”, or proclaim the importance of “healthy money”, for example “Bitcoin solves this problem”, they are ignored as if they were a group of) fanatics or b) boring and obsolete.
“Toxic” is the general answer given by the Mr. Wonderfuls, BitBoys and Vitalik of the world.
Good…. here we go again.
The reality of all Ponzi schemes is that they fall much faster than they rise – and when their rise has been stellar, their fall is much more rapid. From Mt. Gox to BitConnect to Luna to BlockFi to Celsius to Voyager and now to FTX.
I’m everything the same, and they are No unlike any other cryptocurrency company on the market. Yes, I use the word “company” precisely because all these so-called “projects” are just that; companies not unlike FTX, who play pretend with numbers evoked out of code. And yes, that includes Ethereum, Cardano, Hex, Solana, Chainlink, and every other cryptocurrency, NFT or DeFi stupidity out there.
Only Bitcoin is different. Only Bitcoin lacks (and I say this as a positive attribute) “leadership” and a snake head to cut or press. Only Bitcoin has an immaculate conception. Only Bitcoin has had an organic, market-driven emergency. Only Bitcoin is fixed. Only Bitcoin is finished. Only Bitcoin matters.
The Bitcoin maximalists who have warned you about all of the above have also warned you about all shitcoins. There will come a time when each of them will explode, implode or disappear.
The only question is, what will it take for you to heed these warnings?
The signs were there, not just the warnings
FTX has always been about fish. I met its founder, Sam Bankman-Friend, or SBF, on a yacht during Bitcoin 2021 in Miami. It was a small private sailing trip we did with about 50 or 60 other people.
I had no idea who he was, other than a really unhealthy looking dude with a swollen intestine and a bad hairdo. We exchanged a few embarrassing words and I went to talk to the waitresses while he stayed in a corner eating hors d’oeuvres.
One of the people on the boat told me he ran a company called “FTX”, to which I replied, “What the hell is that? Another shitty coin?” Her response was, “No, it’s one of the fastest growing exchanges in the world.”
I was intrigued so I asked SBF something, to which he replied that he had run a cryptocurrency hedge fund upfront, was very successful and invested that money in building an exchange.
At that point, I was running a Bitcoin-only app known as Amber, in Australia, and I remember thinking to myself, “Damn, these shitcoiners are literally printing money by fueling gambling addictions – and here I’m trying to help. people to accumulate sits sensibly. What a clown world … ”
Either way, I never heard or thought of him anymore after that, until I saw his “Home cooking with beyond meat” tweets. The sickly physique immediately made sense to me, and so did the shit.
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Physiognomy is important, and while this may trigger some of you, the fact is that the way you appear is largely determined by your behavior and your behavior is a manifestation of your values.
Sure, there are some things you can’t change, but in general, you build and transform yourself into a reflection of what you value most – alas, I’ll save this talking point for a future article on why. Bitcoin is aesthetic.
For now, suffice it to say that poor physiognomy was a warning sign. False meat leads to false business (and many other falsehoods in between, which I won’t mention here as people could be triggered).
What’s on the horizon?
What will the future article “I told you so” be about?
Probably the collapse of Ponzi-like cryptocurrencies whose raison d’etre are “pumpamentals” or Ethereum when it becomes “panopticoin” and merges with governments aspiring to issue central bank digital currencies (CBDCs).
NFTs appear to be dead already. DeFi is in DeepShit, but maybe it has another round.
Whatever it is, it will be painful for the myriad of idiots they are following people like this:
I mean, you couldn’t come up with such a poetic irony if you tried, saying things like:
- “CeFi failed” (despite being sponsored by Nexo)
- “We build great shit and people use it for bad reasons”
- “Is it a problem with the social level?”
Just like Marxists, hosts like this, along with those behind failures like FTX, have a very, very poor understanding of human nature. They think that if you just “build awesome shit”, the world will become a better place and that one day you could “fix the social level” by turning everything into a transhuman smart contract.
They do not realize that constraints are not only important, but necessary. Especially with regard to the language of value (i.e. money). This is actually the answer to points two and three above.
What they see as “flaws” in Bitcoin are precisely its main set of assets. Bitcoin is superior because idiots like SBF, Vitalik Buterin, Roger Ver, Richard Heart and the rest of the charlatans can do nothing to influence it.
Children like this, with no life experience and no understanding of psychology, traditionally had no influence. Unsurprisingly, in a clown world, their voices carry weight.
Imagine what they will do when Ethereum falls apart and their hero, Vitalik, becomes the next SBF. I don’t think they’re ready for that.
The silver lining
So what does all of this mean? What do we do with all of this?
Well … there is always a silver lining.
Some have said that this FTX debacle, in the wake of similar fates for Luna and Three Arrows Capital, has “set the industry back for years”.
I only agree to the extent that the price of bitcoin could be affected in the short term. Otherwise I have to disagree with all my heart.
If anything, I think the whole event brought a bit of reality into the so-called “industry” and showed everyone what really was inside it; a large hot air balloon.
The Bitcoin industry, while perhaps inflated by excessive interest in “cryptocurrencies”, is now closer to where it should have been at this point in its evolution. Many of the stupid ideas, such as NFT and “tokens on Lightning” will likely dissolve and disappear, while the allocation of capital to Bitcoin will renormalize.
Much of the phantom wealth in all the stupid shit coins so rampant in recent years should evaporate, and real capital will seek real innovation and business models in and around Bitcoin.
Bitcoin will have moved from institutions, cryptocurrency companies, VCs, shitcoiners and weak hands, into the long-term cold storage wallets of Bitcoiner and HODLer. A new minimum price will develop and the next growth phase will begin.
This is a net asset. All.
In this sense, SBF, Do Kwon and Su Zhu are the saviors we never asked for, but humanity in general deserved. We are in a clown world, so why not let the saviors with a clown complex accidentally clean themselves up and their stupid industry fiat away with them?
I mean, just look at the FTX portfolio of initiatives. Knowing that all this junk is on a torrent of shit without a paddle brings me levels of joy I haven’t felt since Bitcoin broke its previous all-time high in 2021:
While groups of 20,000 will spend the next few weeks on Twitter Spaces in disbelief, wondering “how this could have happened”, a small number of newly minted Bitcoin maximalists will have been born, a large number of recent minimalists will have had their positions validated and veterans … well, we’ll sit down and we’ll keep telling you.
Some of us in more eloquent ways, others in more colorful ways. And next time, we’ll probably be ignored again, but that’s okay. At least we get free entertainment:
This is a guest post by Aleks Svetski, author of “The UnCommunist Manifesto” and founder of The Bitcoin Times. The views expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.